Depending on where you live, either Walmart (WMT) or Target (TGT) are usually your stores of choice when you need to pick up some new dishes or some basic t-shirts (or do both).
While Kohl's (KSS) may have been on that list in past decades, these days many younger shoppers think of it as the place their parents shopped (if they think of it at all).
That's been reflected in the company's sales, and it's been struggling for some time now. It's made several major strategic changes in the past five years in efforts to attract a younger audience, from partnering with Amazon as a drop-off site for returns to offering a "Sephora at Kohl's" installation aimed at attracting more prestige beauty customers.
But with activist investors eyeballing Kohl's and numerous offers to buy the company (which it's rejected), the company is adrift in a strange land. However, for now, it wants to continue the fight.
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How Kohl's is Targeting the Millennial Audience
Kohl's shared some new strategies at its Investor Day Monday, including a push to grow its Sephora crossover into a $2 billion business, opening more than 100 "smaller format" stores, and a focus on "diverse-owned" brands.
It also promises to add in-store pickup and self checkout, two things Target has offered for years.
However, it also mentions a self-serve return option, which is something most major retailers have yet to offer (although online voices continue to advocate for it). This could grant it an advantage and sway shoppers in its direction--but it has to attract the attention of those shoppers to make the purchases in the first place.
What Target Has That Kohl's Lacks
Kohl's has tried to evolve and adapt to modern times, but it's painfully late on several counts, especially the move to highlight diversity.
By taking a page out of Target's playbook with adding dedicated prestige beauty in-store and online, it attracts the audience willing to spend more on makeup, fragrance, and skincare. And while Kohl's prices are competitive enough to draw the attention of a shopper who came for the Gwen Stefani GXVE collection and noticed a good Kohl's sale on the way out, there's still something missing.
There's an element of cool that the shopper addicted to "Target runs" seems to have a true passion for. From the delight of the Bullseye Playground and all it's cheap, Etsy (ETSY)-esque deals to its legendary Hyde and Eek Halloween decor, the retailer has a firm grasp on how to delight not just the millennial customer, but Gen X as well.
It's further amplified that by dialing up its curbside pickup options to include returns and delivering you an iced caramel macchiato at the same time. The retailer was clever enough to keep an eye on how much people talk about the service on social media, and there's sure to be even more praise on the way.
If Kohl's hopes to succeed in the same market, the cue it should take from Target is to figure out how to talk to the customer it wants to attract in a relatable way. Its Twitter account is too advertising-focused compared to the sassy personality of Target's, which shows in the numbers (Kohl's has yet to hit a million followers, while Target has more than two million).
If Kohl's turned its tone to poke fun at its history, for example (remember this cringe-inducing Black Friday commercial?), it could go from being your grandma's department store to one cool enough to check out today. But for now, it's still sticking with a polite approach--and that's too boring for the audience it wants to care about.
